Capital expenditure maintains a significant lag in the budget execution of 2022, continuing a trend that began during 2021, which had been inherited from the previous year.
For the first quarter of the current year, the Government averaged about RD$6,094 million, a level that represents only 51.97 percent of the monthly average amount that should be invested assuming the goal established in the General State Budget (PGE) 2022.
Preliminary figures from the General Directorate of the Budget (Digepres) cut to April 22 indicate that the capital expenditure executed by the central government at that date totaled RD$24,376.1 million, an amount that represented 17.32 percent of the estimate for the full year, which is RD$140,706.4 million.
Distance
To cover the capital expenditure goal for the entire fiscal year, the monthly average should be around RD$11,725.5 million, a figure that is RD$5,631.5 million higher than that actually spent between January 1 and April 22 of the current year. However, the Dominican budget history has always been strongly inclined towards current expenditures, with a marked relegation of capital expenditures, which are subject to the performance of income or disbursement of financing that usually support infrastructure investments.
Regarding the behavior of capital spending recorded by Digepres as of April 22, the trend was growing, going from RD$2,894.2 million in January to RD$6,398.5 million in February and RD$8,691.7 million in March. For April 22, the cutoff date of the preliminary report, the figure registered a value of RD$6,391.7 million, projecting a fall in relation to the previous month.
Of the six basic components that make up the capital expenditure account, two are the ones that have captured the most resources and are constructions in process and capital transfers granted. The first component records accrued expenses allocated to state infrastructure works in the process of being executed, and the second line records transfers from the central government for investments by entities that are from the decentralized public sector.
For constructions in progress, the accumulated amount as of April 22 amounted to RD$5,145.4 million, just 15.48 percent of the RD$33,202.9 million forecast for the whole of 2022.
Fixed assets accumulated RD$9,864.9 million
The largest amount of capital expenditures executed at the cut-off date was in fixed assets, or gross capital formation, which is the item that has the greatest impact on economic growth. In that line, RD$9,864.9 million were accounted for, which represented 16.16 percent of the estimated amount for the entire period, which is RD$61,017. 8 million. Against total executed capital expenditures, the weighting of 40.46 percent..
